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Facebook is expected to launch its own iPhone photo-sharing service that will go head to head with Instragram and Path. 50MB of data has already been gathered about Facebook’s project, including documents and images of the work in progress.

The service is called WithPeople or Hovertown, internally, and people believe that it will be launched as a built-in feature to its existing Facebook iPhone app or as a separate application, altogether.

Sources state the user interface is a lot faster and offers a more interactive way to view your friend’s Facebook photos, as TechCrunch reports. We are likely to hear more about this project in the coming months in an official statement from Facebook.

Does this initiative represent Facebook going even more social? Is Google too far behind to catch up? Google recently introduced the +1 approach, similar to Facebook’s like system that integrates “+1” with their infamous search engine, but it doesn’t seem to have really caught on yet.

Maybe Google just did too little too soon, and unless they decide to gulp up Twitter, I’m not sure Google will be able to catch up. Although they have acquired a few social startups, I’m not sure that will do the trick. Let us know some of your thoughts on our fan page.